Should I Close my Home Purchase and Sale on the Same Day?

People decide to move for many reasons – relocation because of a better job, a growing family, a better neighbourhood, etc. Once you decide moving makes sense to you, you have to decide whether it makes more sense to buy first or sell first. During home and selling process, you will have to make another decision – what date or dates work better for you to close the deals. Ask yourself: should I buy and sell home on the same day?

In a perfect world where you buy and sell a home at the same time, your closing dates would fall on the exact same day. Buy we live in a real world. To close sale and purchase on the same day is risky. We have to remember that we are not only party in the transactions. If we are home sellers we are dealing with home buyers. Buyers might have difficulties with their mortgages if they made expensive purchase before closing. Or if our buyers are also home sellers, and unexpected delays happened to their buyers.

I would not recommend closing two deals on one and the same day due to other reason. It will exhaust you. If you hire movers, you have to load all of your belongings from a sold house, and deliver and unload all of them on the same day. Even with help of movers it is incredible amount of pressure and stress. If you are a family with small children, it is better to think twice before to plan two closings on the same day.

One of the options to minimize stress from moving in and out is bridge financing. We use this handy option when our closing dates are not the same. It also helps solve the financial issue of when we buy and sell a home at the same time.

Bridge financing helps close the gap when the closing date of our new home is sooner than the home we are selling. Although you may have enough money to cover the deposit on the home you’re buying, you’ll probably need the equity from your existing home to help cover the down payment and closing costs – land transfer taxes, home inspection fee and real estate lawyer fees – on the home you’re buying. This is when your lender can come to the rescue and help you out with bridge financing.

To understand better bridge financing, please contact your mortgage broker. If you do not have one, give us a call, and we will give references for professionals with proven results.

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